News Column

Fitch Expects to Rate Banco de Credito e Inversiones's 5-Year CHF150MM Sr. Fixed Rate Notes 'A-'

June 26, 2014



NEW YORK & SANTIAGO, Chile--(BUSINESS WIRE)-- Fitch Ratings has assigned an expected long-term foreign currency rating of 'A-(exp)' to Banco de Credito e Inversiones's (BCI) five-year CHF150 million senior unsecured fixed rate notes.

KEY RATING DRIVERS

The rating assigned to BCI's new debt issuance corresponds to the bank's long-term Issuer Default Rating (IDR) and ranks equal to its other senior unsecured debt.

BCI's Viability Rating (VR) and IDRs reflect its strong domestic franchise, improved capital base and balance sheet management, more diversified funding sources, and its stable performance through the cycle.

For more information on BCI's ratings refer to 'Fitch Affirms BCI's IDR at 'A-'; Outlook Stable', dated Aug. 1, 2013, available at 'www.fitchratings.com'.

RATING SENSITIVITIES

The rating of BCI's CHF150 million senior unsecured fixed rate notes due 2019 would be downgraded should the bank's IDR be downgraded. The Rating Outlook for BCI's foreign and local currency long-term IDRs is Stable. Downward pressure could result from a deterioration of its capital adequacy ratios, with a Fitch core capital ratio falling and remaining below 8.5%, either from a smaller than planned capital increase or from lower than expected profitability. BCI's ratings could also be under pressure if its operating return on assets falls and remains below 1.5% in the medium term or if any unexpected risk related to the acquisition of CNB deteriorates BCI's profitability or capital base.

Upside potential currently appears limited but could stem from continued growth coupled with a material improvement of its capital base, with greater levels of core capital, while maintaining its sound overall performance, low risk profile and ample liquidity.

Fitch currently rates BCI as follows:

--Foreign and local currency long-term IDRs 'A-'; Outlook Stable;

--Foreign and local currency short-term IDRs 'F1';

--VR 'a-';

--Support rating '2';

--Support rating floor 'BBB+';

--Long-term foreign currency senior unsecured bonds 'A-';

--Long-term national rating 'AA+(cl)'; Outlook Stable;

--Short-term national rating 'N1+(cl)';

--National long-term rating senior unsecured bonds 'AA+(cl)';

--National long-term rating on its senior unsecured bonds totaling MXN3.25 billion 'AAA(mex)';

--National long-term rating on its subordinated bonds 'AA-(cl)';

--National equity rating 'Primera Clase nivel 1'.

Additional information is available 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=836798

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Diego Alcazar

Director

+1-212-908-0396

Latin America Financial Institutions

Fitch Ratings, Inc.

33 Whitehall St.

New York, NY 10004

or

Secondary Analyst

Abraham Martinez

Director

+56-2-499-33-17

or

Media Relations

Elizabeth Fogerty, +1-212-908-0526

elizabeth.fogerty@fitchratings.com


Source: Fitch Ratings


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